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Welcome back Washington lenders!

by Prosper on 04/4/13

We are very pleased to announce that in working with the Securities Division of Washington’s Department of Finance we have achieved approval status for Washington lenders once again. Starting first thing tomorrow morning, Washington lenders will have access to all lending through our platform. We are happy to welcome everyone back!

We also wanted to give our lender community an update on all state statuses. We are doing what we can to get approval in as many states as possible and to make peer-to-peer lending available to everyone. However, each state has its own set of regulations and restrictions along with a comprehensive application process.

For folks residing in Arizona, or North Carolina – each of these states has securities law requirements that we are unable to meet at this time. Unfortunately, we are not pushing forward with Arizona or North Carolina. In the event that anything changes, we will reassess this opportunity.

Many states have responded individually with a message that conveys a fundamental skepticism for peer-to-peer lending, and it’s unlikely we will receive approval without a shift on these views. These states include Arkansas, Indiana, Iowa, Maryland, Massachusetts, North Dakota, Pennsylvania, and Tennessee. If you reside in one of the aforementioned states and feel so inclined, you can reach out to your local governments encouraging their consideration of peer-to-peer lending platforms.

Similarly, several states who have communicated skepticism of peer-to-peer lending, have required us to withdraw our application when it became apparent that we could not overcome that skepticism in the near term. Thus, we have removed applications from Alabama, Kansas, Kentucky, Nebraska, New Jersey, New Mexico, Ohio, Oklahoma, Texas, and Vermont.

We will continue to push this on our end as peer-to-peer lending grows and becomes more widely accepted across the nation. We appreciate your support and feedback along the way.

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7 Responses

matt | April 8th, 2013 at 3:52 am

how about an updated map…where they are…where they withdrew their applications…etc

Sean Turner | April 8th, 2013 at 6:49 pm

Let me tell you how freaking great it was to login and not seeing that bloody red warning telling me I couldnt reinvest my money. Its very good to be back in full swing of things and you got it up just in time for me to divert a few thousand dollars back here I had originally sent to lending club.

Robert Connor | April 10th, 2013 at 1:56 pm

I think alternative financial service or peer to peer lending should be available everywhere!

Terry | April 11th, 2013 at 11:39 am

Thank you from California, my returns are helping to finance my retirement. I have rebalanced my accounts with Prosper and Lending Club twice to even amounts and Prosper has far and away the better return over the past several years, even during the downturn. In addition to decent long-term returns in the current low rate environment, I like the warm fuzzies I get helping people get out of debt! Is there risk? Of course! I know to not put all my eggs in one basket.

Joe Keller | April 19th, 2013 at 12:01 pm

i was wondering, can you post the emails or mailing addresses of the Department of Finance for each state so we can send a letter to our state thanking them for letting us be apart of the p2p lending community, or ask them to let us join the community.

Imo | December 20th, 2013 at 8:18 am

Your blog post doesn’t tell the whole story. I emailed the Maryland Securities commissioner about this almost two years ago, and this was their response:

“Thank you for your inquiry. There is no provision that prohibits P2P
lending. Such lending companies are permitted to operate in Maryland in
compliance with the state’s securities registration requirements. The
two companies, Prosper and LendingClub, filed to become registered but,
in May 2010 and March 2010, respectively abandoned their filings in
Maryland and chose not to pursue registration. Any company that wants
to conduct P2P lending may do so provided the company does so in
compliance with Maryland law. The timetable for those companies to
become registered is up to them, but won’t happen unless they re-file
their applications for registration. “

Dave Dopp | March 27th, 2014 at 4:24 am

What the commissioner failed to tell you is that Maryland (and Texas) has P2P lending rules and regulatory requirements so strict that it effectively bans P2P lending. The expense and time required to comply with the regulations precludes any opportunity for Prosper to make a profit. In the case of Texas, it really keeps me PO’d since the bureaucrat’s ignorance and refusal to become educated about P2P lending keeps me from participating as an investor. Makes me suspect that the banking lobbyists have paid a fortune to keep competition out. lol.

posted in Featured,Lenders,Prosper News 7 comments »

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Notice: Blogs and other materials posted on or linked from this page that use the name "Prosper" generally use that name to refer to Prosper Marketplace, Inc. if published before January 31, 2013 and to refer to Prosper Funding LLC if published on or after February 1, 2013.